1. (1) As provided by ORS 285C.200(2)(b), a sponsor and business firm may agree to waive the employment qualifications of ORS 285C.200(c), and instead impose alternative performance criteria to maintain the exemption from property taxation under ORS 285C.175. Such authority is subject to the following requirements:

   1. (a) A clear statement of the waiver of the requirements of ORS 285C.200(1)(c) along with description of the approved alternative performance criteria in a written agreement between the business firm and the sponsor.
   2. (b) The alternative performance criteria that may be approved are limited to Job Retention, Wage Growth, or an alternative criterion adopted by rule by the Department.
   3. (c) The written agreement to utilize alternative performance criteria must be executed on or before the date on which the firm is authorized under ORS 285C.140.
2. (2) The minimum threshold that a zone sponsor may approve for a business firm to utilize Job Retention (as defined in OAR 123-674-0100) as an alternative performance criterion under (1)(b) of this rule is that the business firm will retain at least 90% of the jobs for the duration of the business firm exemption period, as compared to the Existing Employment (as defined in OAR 123-674-0100); or
3. (3) The minimum threshold that a zone sponsor may approve for a business firm to utilize Wage Growth (as defined in OAR 123-674-0100) as an alternative performance criterion is that the business firm will increase the average hourly wage rate of Annual Employment by 10% as measured against the previous exemption year’s Annual Employment wages or to Existing Employment wages if calculating the first year of exemption.
4. (4) For avoidance of doubt, a zone sponsor may adopt a resolution setting an alternative minimum threshold for Job Retention and/or Wage Growth that a business must meet to qualify that is higher than those provided in (2) and (3) of this rule.
5. (5) This rule does not apply with respect to qualified property of an authorized business firm used in operating a data center, as defined in OAR 123-650-0100.

Statutory/Other Authority

ORS 285A.075 & ORS 285C.200

Statutes/Other Implemented

ORS 285C.200, ORS 285C.203 & ORS 285C.205

History

OBDD 10-2026, temporary adopt filed 06/05/2026, effective 06/05/2026 through 12/01/2026